Has Powys been shafted again by new Welsh budget?
The Welsh Labour Government’s Final Budget for the 2025-26 financial year was voted on in the Senedd on Tuesday, with the ruling Labour party having to enlist the support of Liberal Democrat member for Mid and West Wales, Jane Dodds, to push it through.
She did a deal with Labour to release £100m more funds that she wanted for a number of projects, including the Wales-wide ban on greyhound racing.
But Montgomeryshire’s Assembly Member, Russell George, who is a Conservative, has come out this morning to slam the budget, saying it has failed Powys.
The Welsh Conservatives have been heavily critical of significantly increased spending on ‘Central Services and Administration’ (£117 million over just two years) as well as significant spending on agency staffing in the Welsh NHS.
Mr George criticised the budget for failing to include much-needed capital investment in the Welsh NHS, pointing out that a new hospital-build in Newtown to serve Montgomeryshire has been delayed due to insufficient funding in the NHS capital budget, with finances being diverted to other projects in Wales.
The MS has said that while the hospital is still expected to be delivered, the local health board now needs to take the project forward in phases, over a longer period, due to the Welsh Government’s poor budget.
The local government settlement as part of the Welsh Government’s budget, announced by Cabinet Secretary for Housing and Local Government Jayne Bryant MS, includes an overall 4.5% increase in core revenue funding. However, Powys has been awarded only a 3.8% increase, ranking joint 14th out of 22 Welsh councils, despite the rising costs and financial pressures facing rural communities.
Mr George has also voiced concerns that the budget does not go far enough to meet the increasing demands on local authorities. Despite claims from the Welsh Government that it is prioritising local services, he said rural councils across Wales are still facing financial strain, and the impact on essential services such as education, social care, and transport remains a major concern.
The Senedd Member has said that the Welsh Government has also rowed back on its original commitment to an hourly train service from Aberystwyth to Shrewsbury.
Despite previous promises, the service will now only run hourly for part of the year rather than all year round, failing to deliver the reliable public transport that Powys residents were expecting.
Not surprisingly, Mr George joined fellow Welsh Conservatives in voting against the budget yesterday, and it was passed with Ms Dodds abstaining.
“Once again, Mid Wales has been left behind,” said Mr George. “While urban areas see larger funding increases, rural areas continue to struggle with underfunded services. Once again, Powys ranks at the bottom of the table when it comes to funding being provided.
“The new hospital build in Newtown to serve North Powys has been delayed due to insufficient funding in the NHS capital budget, with finances being diverted to other projects in Wales.
“While the hospital should eventually be delivered, our local health board now needs to take the project forward in phases, over a longer period, due to the Welsh Government’s poor budget priorities.
“The proposals for an hourly service on the Cambrian Line were welcomed by me and many others in Powys. I am deeply disappointed that this promise has been broken, and the service will only be available during certain months of the year, and not all year round as originally promised.
“This is not a budget for fairness; it’s a budget that continues to fail rural Wales. I voted against the Welsh Government’s budget because, once again, the Welsh Government has produced a budget that fails to address the concerns of rural areas such as Montgomeryshire and other rural communities across Wales.
“I am disappointed that this budget passed due to the Liberal Democrat support, as it clearly fails mid Wales.”
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